Cove Capital Investments LLC, a private equity real estate firm and Delaware statutory trust sponsor, has purchased a newly constructed net lease asset in the West Palm Beach metropolitan region on behalf of its Cove Tractor Net Lease 60 DST, a Reg. D private placement offering that seeks to raise $11.1 million of equity from accredited investors.
The property is leased to Tractor Supply Company (NASDAQ: TSCO), which describes itself as “the largest rural lifestyle retailer in the U.S.” The company operates approximately 2m200 stores in 49 states and has been in business for 85 years and carries an investment grade credit rating from S&P of BBB.
“We are excited about this unique Delaware statutory trust offering for several reasons. First, this is rare net lease real estate,” said Dwight Kay, managing member and founding partner of Cove Capital Investments. “The asset is located in a thriving community of the West Palm Beach MSA with a population of over 214,000 within a five-mile radius. Second, the tenant is the largest national farm and ranch retail store brand in the nation. This coupled with the strategic location of the asset in Palm Beach County, which has an estimated $1.4 billion in agricultural sales, makes this a highly desirable offering for our investors.”
Cove says the property was acquired debt-free for those investors who want to “potentially mitigate risk by investing in a debt-free offering with no risk of lender foreclosure or lender cash flow sweeps.”
“We are excited to bring another high-quality, debt-free DST real estate investment option like the Cove Tractor Supply 60 DST which provides a solid opportunity to our investors,” said Chay Lapin, managing member and founding partner of Cove Capital Investments. “With this asset, we are free to pursue whichever exit strategy provides the best potential opportunity to our investors without being constricted by lender prepayment penalties and vast defeasance costs. Our emphasis on debt-free 1031 exchange investing has been an important differentiator in the marketplace, and an attractive ingredient for our growing number of investors, advisors, broker-dealers, and registered investment advisers.”
Cove Capital Investments is a private equity real estate firm providing accredited investors access to 1031 exchange-eligible Delaware statutory trust properties, as well as other real estate investment offerings. The team consists of acquisitions, asset management, accounting, due diligence, in-house counsel, investor relations, marketing and capital markets. Cove has sponsored over 1.9 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial and office sectors.